FEATURE STORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . by Becky Miller

The State of the Futon Mattress Industry

Remember when your only thoughts about mattresses concerned how you could get away with jumping on the bed? Now our heads swim with mattress thoughts, and none is so simple as testing a bed’s launching power the old fashioned way.

Flammability, foam vs. innerspring vs. cotton, appealing to high-end consumers, the impact of the World Market Center…despite these changes and challenges facing the futon mattress industry, in speaking with industry leaders, I found an overall positive opinion of the business and its future.

Only YOU can prevent bedding fires

The first response to the question, “What are people talking about in the mattress industry?” was almost always a firm, “Flammability!”

“Sleep safety is literally one of the hottest topics in the art of mattress manufacturing,” quipped Karen Day of Otis.

With California Technical Bulletin 603 (TB 603, the open flame test for flame retardance) recently made law, mattress-manufacturing companies that want to compete in California have had to alter their production processes. Even companies that do not sell in California are working toward compliance with TB 603 in anticipation that the state standard will probably become a national standard.

“I’m over 50 percent sure that it will become a nationwide standard sometime between Jan. 2006 and Jan. 2007,” said Steve Byer at King Koil.

“TB 603 will go national in the first half of ‘06,” said Tony Wolf at Wolf Corp. “The federal regulation will look different–perhaps it will be even more strict. Wolf is largely ready now and will be fully ready this summer. We’ve been in the labs over a year now.”
Bob Naboicheck at Gold Bond doesn’t think that the federal government will impose a national flammability standard until 2007.

And what about flammability tests/regulations already in place? “If 603 goes nationwide, then traditional mattresses and futons will be a lot more similar than they have been for the last 20 years,” said John Widly at Elite Products. “Futons have always had to pass 116 and 117. Mattresses only had to pass the cigarette test [the current federal cigarette smolder standard, 16 CFR 1632]. Futon manufacturers may fall off
in complying with 117 in California because it won't mean anything–603 will supercede it.”

“With 117, all the materials separately had to pass the burn test,” Naboicheck said. “603 is more realistic. It simulates what is actually happening in the homes when a fire happens.”

Some questions remain about the feasibility of TB 603 becoming a national standard. “TB 603 is too much–it’s a two-day test for one mattress,” Widly said. “There aren’t enough labs in the country to test all the mattress styles.”

Tony Wolf thinks that there will be enough labs, “if people don't beat a path to the door in the last 10 minutes.”

While the regulation changes have caused work, stress and expense for manufacturers, they do support the long-term goal of protecting consumers. In fact, this concern for consumer safety has actually caused some manufacturers to question the new standards.
One fear is that the new regulations could increase prices so much that many people won’t be able to afford these new, safer mattresses. “TB 603 will increase the price of the product, no question about it,” Widly said. “What the government will achieve by increasing the cost at retail is putting out of reach the very technology that will prevent fires.”

Another concern is that in pushing for fire-safe mattresses, the government may be exposing citizens to toxins. “Unfortunately, [TB 603] is not combined with the equally important issue of toxicity,” said Theodore Casparian of White Lotus. “We are investigating ways to achieve lighter, more resilient mattresses, one of the primary motives for the shift away from cotton, that also comply with pending legislation, without resorting to toxic choices.”

Because cotton, the original futon material, works as a natural fire retardant, mattress manufacturers are shifting back toward using cotton in the wake of the new regs. “[The new regulations are] making traditional mattress people use more cotton in their product,” Widly said.

“A conventionally made [cotton] futon will pass 603 much easier than conventional bedding,” Naboicheck said. “Cotton futons very easily meet 603 requirements. Conventional mattresses, filled with untreated polyester and rayon, will turn into a huge burn. Futons are made of boric acid-treated cotton batting wrapped around foam. The cotton becomes a barrier around the foam so that the foam won’t burn. There are fewer chemicals [needed] in the materials for the 603 test than the 117 test standards.”

Some manufacturers see the regulation change as a very good thing. “Since we’re in California, the new regulations have actually been advantageous to us,” said Jim Gutierrez of Big Tree Big Sleep. “This helped us go out and reinvent ourselves–find new constructions and materials for our different products. Our whole line is available in TB 603 compliance. We have been able to offer it without much of an added cost. We’ve had over a year’s worth of research and development with suppliers. We have not had to sacrifice comfort for compliance.”

What’s in your recipe?

“The futon mattress business is like the restaurant business,” said Mitch Gelbard of United Sleep. “The key difference [between companies] is, what’s in your recipe?”

Foam: Foam is one of the most-discussed filling materials. “The biggest single story has been the visco-elastic foam story, driven, of course, by Tempur-Pedic,” Wolf said. “Anybody who aspires to be anybody has that story up front. The consumer is certainly interested, so everybody and his brother is going to have something going on with this.”

“Tempur-Pedic created a great perceived value in the mind of the consumer for visco,” Widly said. “Futons are able to deliver that feel for a lower cost than a conventional mattress.”

Other types of foam, such as latex and Pluralux, are used as well. “The bottom layer of our mattresses is Pluralux foam, which was originally created by Barnhardt and NCFI to replace spring units in chairs and sofas,” said Pat Dortch of Carriage House. “We thought it would make a great base for a mattress.” The Pluralux base in the six-inch mattress on their studio sofas is topped with a layer of visco.

Natural fibers: “The biggest change that we have noticed in the last five to ten years is the decreasing use of cotton in the mattress,” Casparian said. “While visco and synthetic latex have grown in popularity in just the last five years, clearly over the last ten years, most manufacturers have shifted toward all alternatives to natural cotton.”

Some manufacturers do continue to use natural fibers in futon production, often in conjunction with other materials. “Our Aerolife product gets a foam-like response from cotton,” Wolf said. “It uses a minimal amount of polyester to bond the cotton, which is not traditional carded cotton, but rather the cotton is allowed to curl and ball itself up in a mass rather than be formed in a web.”

A few companies have chosen to produce natural-fiber-only futons. “When White Lotus began crafting natural fiber mattresses by hand 24 years ago, we were one of many companies doing this,” Casparian said. “We haven't changed a thing. Converting couches are certainly an important business for us, but the majority of our mattress sales are for sleeping, not for couches. That says a lot about our futon mattresses. People want to sleep on them, rather than, ‘yeah, sure, you can open it and sleep on it also.’”

Coils: “As the Simmons face in the futon world, we have access to their testing facilities and technologies,” Gelbard said. “The Simmons Beauty Rest is famous; now United Sleep has developed a six-inch-high pocketed coil like the Beauty Rest has, whereas coils in futons used to be only three inches.”

“Otis’ new Coil in Coil™ Support Technology will have 2,112 coils acting with total independence,” Day said. “It will be offered with a uniform coil pattern or with targeted zones in four different firmnesses.”

Haute consommateur

For most retailers, the ideal customer is one who values quality over price. While not forsaking mid-range futons, manufacturers are also catering to the customers who want luxury bedding and are willing to pay for it. Many of the manufacturers I spoke with mentioned the emphasis on high-end product in the mattress selections they offer.

“The initial excitement of a rapidly growing industry segment has cooled down,” Byer said. “The exciting push has turned into a mature, steady market. The mature industry has produced a lot of higher-end product.”

“The biggest changes have been in the increased comfort levels–new materials, the build of mattresses–and we’ve seen an increase in retail pricing because of these new comfort levels,” Gutierrez said.

“Elite is focusing on leaner, more brandable mattresses, emphasizing the higher-end product,” Widly said.

“United Sleep introduced at High Point a mattress, by itself, at a cost of $225 wholesale, $550 retail,” Gelbard said. “It has a six-inch pocketed coil, configurations of eggcrate foam combined with either visco or latex, all wrapped in a cotton-poly batt that is TB 603 compliant. The shell is available in regular cotton twill as well as 18 higher-end fabric choices: microdenier, suede, etc. It can be finished with piping. The futon is actually upholstered with that fabric, so it looks a lot neater. The average selling price for a complete [futon] sofa with all components is about $400 in the industry. Manufacturers may be afraid of higher prices, but consumers aren't necessarily. I think [offering a higher-end option] gives the consumer a choice. $1,000 is high for futon sofas but not outrageous for sofa beds and is in keeping with the way furniture and pricing is going.”

Big Sleep has taken a similar track with its futons. “Our biggest difference is being able to tie the package together–making the futon look like an upholstered sofa, since futons are used more for sitting surfaces than as a bed,” Gutierrez said. “This way, it fits in more rooms in the house. We’re utilizing accessories and use designer fabrics actually attached to the mattress so it looks like an upholstered piece.”

How will upholstered futons affect the industry? Naboicheck is concerned that “upholstered futon mattresses will hurt the cover business and reduce the ticket price of the average futon sofa sleeper sale.”

Gutierrez does not think that fully upholstered futons will hurt cover sales. “As fashion trends change in the home, the consumer can add a zippered cover on top of the upholstered cover,” he said.

If a trend toward upholstered mattresses develops, we could see partnerships develop between cover and mattress manufacturers, such as the relationship between SIS Covers and Carriage House Furniture. Carriage House partners with SIS on upholstered beds, and the companies are working toward teaming up on studio sofas as well.

Believing Las Vegas

“Forget the futon industry–the whole furniture industry is curious to see how Las Vegas will affect it,” Gelbard said. “I was in High Point to set up the last week in March. The conversation topic of everyone–hotel people, a cab driver–was, how will the World Market Center affect High Point? High Point is scared.”

Fear of the unknown drives some manufacturers to be a bit apprehensive about the WMC as well. Wolf thinks that the new market will dilute the effectiveness of the futon industry show. “Everyone will go to see what’s going on. It will be a big industry party. I hope business will go on as well. A lot of product announcements will be made there–there will be a lot of competition for press.”

“The big maybe is that more regular furniture stores will come in and shop us [the futon vendors],” Gelbard said. “Or, will people in Vegas be so busy shopping regular furniture vendors that they won’t come in and see us? Will Las Vegas itself be a distraction? Will staying out late at shows and restaurants affect people’s time and desire to do business?”
Others are ambivalent. “I don’t think it will affect the industry,” Naboicheck said. “Rather, it will just give retailers more places to shop. Vegas is more inviting than High Point, which is hard to fly in to, find a hotel room, etc.”

Some manufacturers are extremely excited about the upcoming market. “The World Market Center will only enhance the futon mattress industry,” Day said. “The Who’s Who of the industry will be there to view all the wares in the industry. Otis will have the opportunity to appeal to an international group of buyers that embrace new technology and innovative concepts in the art of sleep, comfort and durability. This is just the kind of market we have been waiting for!”

“Elite is in a great position to benefit as well as, if not better than, anybody from the World Market Center,” Widly said. “We have a great location in the main building–we got in early. We believed in the World Market from day one. We believed it would not only close down San Francisco, but would also compete with or even replace High Point.”

“It’s another opportunity for retailers to see what’s happening,” Gutierrez said. “It gives retailers the opportunity to go to one place to see everything. With the slowing of the San Francisco market, it’s key to have another market in the western part of the United States.”

Some manufacturers are more concerned about permanently locating the futon show in Vegas than they are about the overall effect of the WMC. “Most of our business is on the East Coast,” Byer said. “When we’ve gone to Vegas in the past it has not had a big impact on our business. I don’t think the WMC will have a big impact on the futon industry. Our East Coast customers come to our showroom all the time. We cover the East Coast very well, so it’s not practical for us to ship to the west. I prefer it when the futon show is on the East Coast as well as on the west, like when it was in Providence [R.I.].”

White Lotus sees the same problem with relocating the futon show to Vegas. “Moving the FAI show around the country still allowed some local vendors to choose to present when the show was close to them,” Casparian said. “I predict that the WMC will simply be giant companies with mostly foreign-made goods, selling to mass marketers. White Lotus will miss out on the yearly meetings with other small retailers.”

Postulations

What does the future hold for the futonosphere? Overall, mattress makers feel
positively about the future, though some uncertainty furrows manufacturers’ brows.

Growth in high-end market: “The futon business will go along with the traditional mattress business,” Gelbard said. “It will become more high tech with more sophisticated filling materials and fabrics. I’ve been in the futon business since it was a packing crate with a bag of cotton on it, to a product that’s really sophisticated. We had dealers in High Point who couldn’t believe how nice futons are.”

“High-end product will continue to grow, and business will be stable,” Byer said. “Interest in high-end materials will continue to grow.”

Effect of petrochemicals: “As we go forward, look no further than the price of gas at the corner store: some fundamental changes will happen,” Wolf said. “While polyurethane won’t disappear, it will decline. We can look back to the roots of the futon industry–a natural, renewable resource. Thinking consumers like that concept of renewable resources as the core of the product.”

“Material costs are increasing with the state of petrochemical products,” Gutierrez said. “This has affected pricing across the board. Consumers will see prices rise, but they will see this in all categories.”

Importing: “While most of the frame production for this industry has moved overseas, the mattresses are still being made in this country,” Casparian said. “Within five years, I expect most mattresses will be made in China, since most of the raw materials and machinery will already be there, and the labor will be cheaper.”

“China will be a factor,” Naboicheck said. “We will see futon mattresses coming in from China, not just frames. The mattress is the next thing that is coming in from overseas. This will decrease prices.”

Potential of the futon

Looking toward the future, Karen Day said, “Safety and compliance will be on the forefront of manufacturers’ minds, especially with the advent of TB 603 and national standards for open flame and TB 604 around the corner. Platform bed sales will continue to be on the rise. We have known for years the potential of the futon, but the image is finally starting to catch up to where it needs to go.”

What is the real potential of the futon? How far could it go, given optimal
circumstances?

Johann Wolfgang von Goethe said, “When we treat man as he is, we make him worse than he is; when we treat him as if he already were what he potentially could be, we make him what he should be.” In a small way, could the futon business work the same?
Believe that mattresses will be safe; that we can choose materials that are good for consumers and for our planet; that when properly educated, customers will choose quality over low prices; that new markets will provide growth opportunities.

Believe most of all that futons continue to offer a value that consumers want.
If we really perceive futons that way, it will rub off on others. Believing in its potential is the best way to help the category reach that potential.

Please email me with your thoughts , comments and questions.

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